SFO confirms investigation into CFX Trade Safe Limited

SFO confirms investigation into CFX Trade Safe Limited

The Serious Fraud Office (SFO) confirmed today that it has commenced a Part II investigation into foreign exchange trader, CFX Trade Safe Limited.

CFX Trade Safe, based in Whangarei, traded foreign currency on behalf of an estimated 50 clients, both in New Zealand and overseas.

SFO Acting Director Simon McArley says: “It appears that, at some point, the company suffered a major financial loss and we suspect that falsified documents may have been used in an attempt to hide this information from investors.

“We encourage any past or current clients of CFX Trade Safe that may have information that would be relevant to our investigation to contact the Office.” 

The SFO was alerted to the case after being contacted by an employee of CFX Trade Safe. They are receiving full cooperation in their investigation from all parties involved.

A financial analysis has already been commenced in order to determine the scale of the losses involved and number of people affected. The SFO is also working with the Companies Office, who are managing the recovery of assets from the company.

Investors who have information relating to this case that may be of interest to the SFO are encouraged to contact Case Manager Willie Harris on 09 301 0135 or willie.harris@sfo.govt.nz in the first instance.

For further information

Sarah Knowles
Serious Fraud Office
Phone: 021 675 998

Note to editors

Role of the SFO

The Serious Fraud Office (SFO) was established in 1990 under the Serious Fraud Office Act in response to the collapse of financial markets in New Zealand at that time.

The SFO operates three investigative teams:

• Fraud Detection & Intelligence;
• Financial Markets & Corporate Fraud; and
• Fraud & Corruption.

The SFO operates under two sets of investigative powers.

Part 1 of the SFO Act provides that it may act where the Director “has reason to suspect that an investigation into the affairs of any person may disclose serious or complex fraud.”

Part 2 of the SFO Act provides the SFO with more extensive powers where: “…the Director has reasonable grounds to believe that an offence involving serious or complex fraud may have been committed…”

The SFO’s Statement of Intent 2011-2014 sets out the SFO’s three year strategic goals and performance standards.  It is available online at: www.sfo.govt.nz(external link)